BCI in the first quarter of 2019 has worsened, dropping to 22.6 index points, which is a 7.4 index point loss over the previous quarter. The BCI drop is driven by worsening in the past performance and expectations in a number of the business sectors. Interestingly, companies in the construction industry assessed their past performance most pessimistically, however they display the most optimistic expectations. While the private sector expectations tend to worsen, they continue to remain positive.

Geostat recently updated its preliminary estimate of real GDP growth for the first and second quarters of 2018. The Q1 and Q2 GDP growth estimates were revised downward to 5.2% and 5.6%, respectively. The third quarter estimates so far remained unchanged.

Recently, Geostat has released its preliminary estimate of real GDP growth for the third quarter of 2018. The Q3 growth rate now stands at 4.0%, which is 3.2% below the ISET-PI’s last forecasted value. As a result, the estimated real GDP growth for the first nine months of 2018 amounted to 4.9%. ISET-PI revised its forecast of real GDP growth for the fourth quarter of 2018 to 3.7% - down from 6.4% in October.

Speaking with managers of companies operating in Georgia, one frequently hears complaints about a lack of certain specialists in the Georgian labor market. For instance, firms operating in the construction sector are often forced to hire foreign experts, as they do not find sufficiently qualified engineers and architects in Georgia. The shortage is particularly pressing in technical subjects and the sciences.